Regulatory Alerts2015-01-01
Capital Markets (Foreign Investors) Regulations 2002
These regulations establish the framework for foreign investment in Kenyan securities, generally allowing unrestricted participation while granting the Cabinet Secretary authority to impose maximum shareholding limits in cases of privatization, strategic industry preservation, or national interest. Listed companies and stockbrokers are mandated to maintain specific registers, report shareholder status to the Authority, and monitor adherence to prescribed foreign ownership thresholds. Transitional provisions allow existing foreign investors to retain holdings exceeding new limits while strictly prohibiting further acquisitions that would breach those thresholds, except for specific bonus or scrip dividend entitlements.
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